Purpose – The purpose of this paper is to examine the impact of corruption on the size of the shadow economy in countries that differ with respect to income level or geographical location. The underlying idea is that the primary manifestation of corruption might be associated with country...

This paper analyzes the dual exchange rate system with neutral intervention, emphasized by the classics in the field, whereby the central bank sells in the capital market the foreign exchange it acquires from the current transactions. In contrast to nonsterilized intervention analyzed earlier in...

In this study on labour input and wage formation in Finland the importance of liquidity constraints measured by the ratio of interest payments to cash flow is examined. Financial solvency problems are shown to lead to a reduction in labour input, potentially explaining for the most part the 16%...

This paper reports first results from a survey of 404 middle-sized and large manufacturing firms from 40 Russian regions in April-June 2003. We examine the extent of social service and infrastructure provision by the firms and the firms’ assessment of the quality of public infrastructure and...

The division of tax revenues between the federal, regional and local layers of government of the Russian Federation has undergone continuous reform and thus received a lot of attention both in the public discussion and in the related research on fiscal federalism. Another important unsettled...

We construct a model that takes seriously the role of bureaucracy in the characterization of time-consistent policies. We argue that if the possibilities for governments to reduce the size of bureaucracy are limited, bureaucracy can be used as a means for influencing future governments. We show...